System and method for determining payroll related insurance premiums

ABSTRACT

A computer-implemented method for determining payroll related insurance premiums includes receiving at a server computer first payroll data relating to a first employer in a first data format from a first source and second payroll data in a second data format from a second source. At least one of the first source and the second source includes an employer payroll computer system at an employer location. The received data is read and extracted by a utility program at the employer location. The method further includes conditioning the received payroll data into uniform format payroll data; filtering by at least one of the utility program and the server computer the payroll data to remove non-premium related data; applying by inclusion and exclusion rules from a rules engine to determine payroll data items to consider in calculating a payroll-based insurance premium; and calculating payroll-based insurance premiums.

CROSS REFERENCE TO RELATED APPLICATIONS

This application is a continuation application of co-pending U.S. patentapplication Ser. No. 13/340,261 entitled System and Method forProcessing Payroll Related Insurance Premiums, filed Dec. 29, 2011,which is a continuation of U.S. patent application Ser. No. 11/975,224,filed Oct. 17, 2007, now U.S. Pat. No. 8,112,333, the entire contents ofeach of which are herein incorporated by reference in their entiretiesfor all purposes.

FIELD OF THE INVENTION

This invention relates to a system and method for processing payrollinsurance premiums such as workers' compensation payment obligations,and more particularly, to a system and method for dynamically verifying,calculating and billing insurance premiums in real time.

BACKGROUND OF THE INVENTION

In order to determine the appropriate premiums in certain lines of theinsurance business such as workers' compensation an insurance companymust have an accurate assessment of the insured's total exposure duringa fixed period of time. An insured's total workers' compensation premiumas it might for certain general liability insurance depends on the typesof employees and total payroll of the insured. Previously, thecalculation of payment premiums has been performed retrospectively, e.g.for the previous month's premiums due. In other instances, costly andtime-consuming audits lead to premium adjustments that reflect theactual number of employees. On occasion, insurance companies makeadjustments to premium at policy renewal, expiration or cancellation.Because workforces change over time, workers' compensation premiumpayments frequently represent over or under charges for the insured. Ineither case, the difference between the actual amounts owed and thatpaid creates inefficiencies in cash flow. Payments lower than therequired premiums tend to over estimate cash flow. Payments higher thanthe required premiums tend to under utilize available cash. A method andsystem that accurately determines the workers' compensation exposure ona daily, weekly or monthly basis would eliminate the under and overpayments businesses currently experience.

SUMMARY OF THE INVENTION

The present invention pertains to a computer system comprising a remotesite payroll system configured with a accounting/bookkeeping softwaresuch as QuickBooks® Assisted Payroll or QuickBooks®Pro/Premier/Enterprise, a customer payroll system having a payrolldatabase; a utility to permit a central site computer server to readpayroll accounts residing in a payroll database at the remote site; anInternet connection having a browser; the central site server having afilter to allow extraction of payroll data exclusive of other payrolldeductions; and a rules engine customized to a particular remote payrollsystem that includes a worker classification means to separate differentoccupations; and a billing system.

The inventive process comprises: validating username/passwords beforeaccessing a customer payroll system payroll database; accessing thecustomer payroll system payroll database; encrypting payroll data;transmitting encrypted payroll data from the remote site to the centralsite asynchronously or scheduled in real time; uploading the payrolldata onto the central site server database; collecting an employeeroster associated with the payroll data; categorizing pay-typeinformation; parsing and translating the categorized information;storing the parsed and translated information into temporary databases;detecting the presence or absence of fraud that may be related to thepayroll data; transferring the payroll data resident in the temporarydatabases to a process for applying state jurisdictional inclusion andexclusion rules applicable to workers' compensation payments; andpushing final data into a billing system for debiting the customeraccount.

The invention herein is also drawn to a payroll system for determiningan insurance premium comprising: an accounting/bookkeeping softwarewhere regular payroll data resides; a utility that permits readingpayroll accounts residing in the accounting/bookkeeping software; anextraction means to generate a payroll file exclusive of deductionsrequired for determination of the premium; a rules engine that appliesjurisdictional inclusion and exclusion rules; a calculator to determinepremiums owed; and a mechanism for transferring one or more premiumbills to a billing system.

BRIEF DESCRIPTION OF THE DRAWINGS

The advantages, nature, and various additional features of the inventionwill appear more fully upon consideration of the illustrativeembodiments now to be described in detail in connection withaccompanying drawings wherein:

FIG. 1 is a block diagram illustrating a system for accumulating,processing, administering and analyzing workers compensation premiums inan automated workflow environment;

FIG. 2 is a flow chart of a method of operation of one embodiment of theinvention;

FIG. 3A is a flow chart of a method of operation of one embodiment ofthe invention;

FIG. 3B is a flow chart of a method of operation of one embodiment ofthe invention;

FIG. 4A is exemplary computer data produced prior to translation parsingand filtering in accordance with one embodiment of the invention;

FIG. 4B is exemplary computer data produced prior to translation parsingand filtering in accordance with one embodiment of the invention;

FIG. 4C is exemplary computer data produced following filtering inaccordance with one embodiment of the invention;

FIG. 5A is exemplary computer data produced following filtering,translation and parsing in accordance with one embodiment of theinvention;

FIG. 5B is exemplary computer data produced following filtering,translation and parsing in accordance with one embodiment of theinvention;

FIG. 6 is an exemplary computer screen in accordance with one embodimentof the invention; and

FIG. 7 is an exemplary computer screen in accordance with one embodimentof the invention.

DETAILED DESCRIPTION OF THE INVENTION

In the figures to be discussed the blocks and arrows represent functionsof the process according to embodiments of the present invention whichmay be implemented as computers, computer executable code, and/orelectrical circuits and associated wires or data buses, which transportelectrical signals. Alternatively, one or more associated arrows mayrepresent communication (e.g., data flow) between software routines,particularly when the present method or apparatus of the presentinvention is implemented as a digital process.

In general, system 100 includes a network, such as a local area network(LAN) of terminals or workstations, database file servers, input devices(such as keyboards and document scanners) and output devices configuredby software (processor executable code), hardware, firmware, and/orcombinations thereof, for accumulating, processing, administering andanalyzing workers compensation premiums in an automated workflowenvironment. The system provides for calculating the workers'compensation premiums for a designated period based on the payrollprocesses, notifying the insured of the amount of funds and timing ofeach expected withdrawal from its bank account, withdrawing from theinsured's bank account the premium funds and transferring the funds tothe insurance carrier. This advantageously results in reduced financialrisks, reduced non payments of premiums and improvement of cash flowsfor the insured. System 100 additionally provides for electronic datatransfer pertaining to administrative data, and billing relating toworkers compensation premiums.

The features of system 100 may be implemented in a system of computerunits communicatively coupled to one another over various types ofnetworks, such as a wide area networks and the global interconnection ofcomputers and computer networks commonly referred to as the Internet.Such a network may typically include one or more microprocessor basedcomputing devices, such as computer (PC) workstations, as well asservers. “Computer”, as referred to herein, general refers to a generalpurpose computing device that includes a processor. “Processor”, as usedherein, refers generally to a computing device including a CentralProcessing Unit (CPU), such as a microprocessor. A CPU generallyincludes an arithmetic logic unit (ALU), which performs arithmetic andlogical operations, and a control unit, which extracts instructions(e.g., software, programs or code) from memory and decodes and executesthem, calling on the ALU when necessary. “Memory”, as used herein,refers to one or more devices capable of storing data, such as in theform of chips, tapes, disks or drives. Memory may take the form of oneor more media drives, random-access memory (RAM), read-only memory(ROM), programmable read-only memory (PROM), erasable programmableread-only memory (EPROM), or electrically erasable programmableread-only memory (EEPROM) chips, by way of further non-limiting exampleonly. Memory may be internal or external to an integrated unit includinga processor or a computer.

The term “server,” as used herein, generally refers to a computer ordevice communicatively coupled to a network that manages networkresources. For example, a file server is a computer and storage devicededicated to storing files, while a database server is a computer systemthat processes database queries. A server may refer to a discretecomputing device, or may refer to the program that is managing resourcesrather than an entire computer.

In FIG. 1, other hardware configurations may be used in place of, or incombination with software code to implement an embodiment of theinvention. For example, the elements illustrated herein may also beimplemented as discrete hardware elements. As would be appreciated,payroll systems 110 a, 110 b, . . . 110 n and server 130, server 140 andthe associated databases 150, 170 may be embodied in such means as ageneral purpose or special purpose computing system, or may be ahardware configuration, such as a dedicated logic circuit, integratedcircuit, Programmable Array Logic (PAL), Application Specific IntegratedCircuit (ASIC), that provides known outputs in response to known inputs.

FIG. 1 illustrates an exemplary embodiment of the computing system 100that may be used for implementing an embodiment of the presentinvention. An entity offering the service of an automated payment ofworkers' compensation insurance premium on a periodic basis initiallyrequires a total and an adjusted payroll with each payroll run from auser providing the payroll accessible through one or more systemsillustrated as payroll systems 110 a, 110 b, through 110 n. The user maybe the employer policyholder or a payroll company providing services toan employer. The system 100 calculates the workers' compensation premiumfor a user based on the payroll processed during the payroll period.System 100 notifies the user of each expected withdrawal from a bankaccount, access of which is provided by the user. System 100automatically draws the workers' compensation premium from the user'saccount based on its actual payroll data for the applicable period.System 100 service allows employer policyholders the ability to pay theinsurance premium on a regular basis rather than paying for insurance asin some cases up to a year in advance, which unavoidably impacts cashflow.

System 100 processes payroll insurance premiums, more particularly,where input data related to workers' compensation payment obligationsobtained from payroll records is acquired in real-time by validatingusername/passwords before accessing a customer payroll system payrolldatabase; accessing the customer payroll system payroll database;encrypting payroll data; transmitting encrypted payroll data from theremote site to the central site asynchronously or scheduled in realtime; uploading the payroll data onto the central site server database;collecting an employee roster associated with the payroll data;categorizing pay-type information; parsing and translating thecategorized information; storing the parsed and translated informationinto temporary databases; detecting the presence or absence of fraudthat may be related to the payroll data; transferring the payroll dataresident in the temporary databases to a process for (a) applying statejurisdictional inclusion and exclusion rules applicable to workers'compensation payments; and (b) pushing final data into a billing systemfor debiting the customer account.

In one embodiment, system 100 for making payroll insurance premiums,more particularly, where input data related to workers' compensationpayment obligations obtained from payroll records is acquired inreal-time comprises: a remote site payroll system 110 n configured witha accounting/bookkeeping software such as QuickBooks®Pro/Premier/Enterprise residing in memory 104, a customer payroll systemhaving a payroll database 150; a utility software resident in memory 104to permit a central site computer web server 130 to receive from theremote site system 110 n payroll data stored in database 150 at theremote site; and server 140 to read payroll accounts either receivedfrom the web server 130 or residing in a payroll database 170; anInternet connection 120 having a browser appearing on display 103. Thecentral site includes web server 130 or alternatively a server 140having conditioning software to parse, filter and generally extractpayroll data received from system 110 n exclusive of other payrolldeductions; and a rules engine 180 customized to a particular remotepayroll system includes a worker classification means to separatedifferent occupations. Once the insurance premiums are determined, thepremium amount due is transmitted through network 120 to a banking orbilling system 190. The billing system 190 debits an employer payablespayroll account and credits an insurance company receivable account.

Referring still to FIG. 1, as previously indicated system 100 mayinclude one or more payroll systems 110 a, 110 b, . . . , 110 n. Eachpayroll system such as system 110 n has a processor, such as CPU 102, adisplay 103, typically supporting a browser, and memory 104. Payrollsystem 110 n includes code operable by the CPU 102 for administeringsystem activities, accumulating payroll information related to workers'compensation premiums, and generating files to be transmitted to webserver 130. The payroll systems such as 110 a also include code operableto create, administer, and accumulate payroll information. A database150 is interconnected to the payroll system 110 n for storingaccumulated payroll information and other data pertinent to a payrollgeneration system. User input device(s) 108 for receiving input intoeach terminal of the system 110 n are also provided as well as outputdevices (not shown) such as a printer or electronic document formatterfor producing documents being interconnected and responsive to each ofthe payroll system 110 n. System 190 represents a banking system orbilling system comprised of an insured's bank wherein a payables debitbank account resides as well as an insurance company bank where in areceivables deposit account resides.

Communications represented by line 115, may be of wired and/or wirelesstype, to provide interconnectivity between payroll system 110 n,database 150 and one or more networks 120, that may in-turn becommunicatively coupled to the Internet, a wide area network, ametropolitan area network, a local area network, a terrestrial broadcastsystem, a cable network, a satellite network, a wireless network, or atelephone network, as well as portions or combinations of these andother types of networks (all herein referred to variously as a networkor the Internet). Data is sent to and from the payroll system 110 n andthe server 130 via a FTP, a HTTP request or http post (collectivelyreferred to herein as an “http post”). The exemplary browser basedsystem 100 can function from any 128 bit (or higher) encryption enabledInternet enabled computer in the world equipped with a browser, such asby way of example and not limitation, MICROSOFT® INTERNET EXPLORERbrowser for the World Wide Web by Microsoft Corp. of Redmond, Wash.;NETSCAPE NAVIGATOR® by Netscape Communications Corporation, of MountainView, Calif.; or MOZILLA FIREFOX® by the Mozilla Corporation of MountainView Calif.

Nevertheless, the invention may also be practiced using otherproprietary or non-proprietary network protocols, over other publicand/or private computer networks. Further, although preferredembodiments include human-machine interface displays and applets thatare capable of running in standard browsers, the invention may bepracticed using native human machine interface applications that rundirectly under the host computers' operating systems (e.g., MICROSOFT®WINDOWS® operating system, UNIX® operating system, Apple™ operatingsystem, LINUX® operating system and the like).

The browser-based system 100 for managing the workers' compensationpremium determination system is accessible by a plurality of users suchas payroll companies or employers, using participant client computerseach equipped with a web-browser. Each participant can enroll in,research, monitor, and select courses of action in the workers'compensation premium determination system at their own pace. As changesrelated to the premium determination are made they are likewiseacknowledged. As such the user becomes aware of the financialconsequences of changes and decisions in real-time or near real-time.

In the illustrated embodiment of system 100, central site web server 130front end 116 communicates with network 120 and payroll system 110 n.The functionality of determining the premiums, generating billing,sending notifications, and managing the payment of premiums reside onthe server 140, however it will be recognized by those skilled in theart of computer and network programming that it may alternatively resideon web server 130. As will be discussed below, the division of certainfunctions regarding the preparation of files may reside on system 110 nor on one the servers 130, 140 depending on efficiencies determined bythose skilled in the art of computer and network programming. Securitymeasures, such as the use of firewalls, encryption and virus protectionmay be used in connection with network 120 transmissions of information,to protect system 110 n and web server 130 from unauthorized access.Such secure networks and methodologies are well known to those skilledin the art of computer and network programming.

In the illustrated embodiment of system 100, server 140 is incommunication with database 170 to store workers' compensation payrollinformation, premium determination, and information related to managingpremiums based upon the provisions of an associated insurance policy.The payroll data is initially stored in local database 150. The payrolldata resident in the payroll system 110 n as it pertains to workers'compensation determination may be pushed from system 110 n to the server130 on a scheduled basis or it may be pulled by server 130 depending onefficiencies determined by those skilled in the art of computer andnetwork programming.

In one embodiment, the server 140 utilizes a rules engine computer code,such as code 107 executable in conjunction with processor 145 andembodied in a computer readable memory 148 in server 140 forascertaining workers' compensation premiums based upon specialjurisdictional requirements such as city, county or state inclusion andexclusion rules and other necessary factors regarding an accuratedetermination of the workers' compensation insurance premium. Thecomputer code 107 also provides for reading data from at least onedatabase, such as database 170 that stores payroll data associated witha corresponding employer.

In one exemplary embodiment, the web server 130 receives payroll datafrom payroll system 110 n as the data is pushed to the server 130 eitherasynchronously upon the occurrence of certain events or upon a regulartime schedule. Upon receipt of the payroll data by the web server 130,server 130 parses and filters the data placing it in condition forfurther processing as a modified payroll file by the rules engine 180.The rules engine 180 applies jurisdictional state inclusion andexclusion rules particular to a state and server 140 determines thepremium due. The process then communicates the amount due through webserver 130 for transmission through network 120 to the banking/billingsystem 190.

Web server 130, in addition to having code for accepting data fromsystem 110 n and database 150, contains code for communicating with thebanking/billing system 190, storing notices regarding termination orextension of the associated payroll workers' compensation determinationand payment service; code for automatically generating at least oneelectronic (email, fax, Instant Messaging, etc.) reminder dependentlyupon the one or more conditions whereby the data received by the centralsite cannot be appropriately processed due to, for example, damagedfiles.

FIG. 2 illustrates the exemplary operation of a computer-softwareimplemented process 200 for determining the workers' compensationpremium associated with a payroll according to an embodiment of thepresent invention. Process 200 is carried out among an employer companyobligated to pay workers' compensation premiums, a payroll company thatdetermines the payroll for the employer company, a service provider thatdetermines the workers' compensation premium, an insurance company towhom the premiums are paid and at least one bank from which funds to paythe premium are withdrawn in favor of the insurance company. It will berecognized that the foregoing parties may be combined in a number ofmanners, such as the employer company may provide its own payroll, whichwould eliminate the payroll company from the process. Likewise theworkers' compensation determination service provider may be a bank, aninsurance company or any other third party service provider.

Referring to FIG. 1 and FIG. 2, the payroll software may by way ofexample be QuickBooks® Pro/Premier/Enterprise, which in one embodimentof the invention resides in memory 104 and communicates with a payrolldatabase 150. In accordance with an embodiment of the present invention,a user uploads utility program 201, which will allow the web server 130to access the payroll files. The user is required to install the uploadutility 201 typically when the workers' compensation policy is enteredinto between an insurance company and an employer. The user then choosesa username and password 203 that will be subsequently recognized by theserver 130 front end 116 software.

Payroll system 110 n determines payrolls on a scheduled basis andcommunicates the payroll information to either a payroll company or anemployer. The payroll company or the employer then processes the payrolland typically pays its employees. Payroll data is uploaded 205 from theemployer, i.e., the insured to the payroll system 110, which collects,stores and processes the employee roster, the pay type information, andthe individual paychecks. As will be described in greater detail, theworkers' compensation insurance premium is then debited against theemployer for the benefit of an insurance carrier.

Referring to FIG. 1 and FIG. 2, first block 201 may utilize input device108 to facilitate uploading the utility into process 200 through system110 having a display 103, and that connects to database 150 and network120. Utilizing the input device 108 in a next block 203, the user entersinformation pertaining to the selection of a username and password.These steps may be performed using a browser (not shown) connected to awebsite via the Internet.

After the initial set up, that is, after uploading the utility 201 andchoosing a username and password 203, the process 200 runs automaticallywithout any intervention by or disruption to the user. When a newpayroll is created at system 110 n, the utility program reads thepayroll data 207 and may store it into payroll database 150 for latertransmission to web server 130. After authentication 209, the payrolldata is either: uploaded as data stream 210 directly to server 130, inthe push configuration, or it is placed it in a ready state making itavailable for the server 130 in a pull configuration. Process 200operations typically operate according to a scheduled billing sequencecheck such as each hour and if new payroll information exists on thepayroll system terminal it is uploaded to the server 130 on a periodicbasis. When new payroll information is present, the site 130authenticates the user name and password 209 and provides data stream210 comprising the payroll data onto the server 130. In one embodiment,the data received by the server 130 front end 116 is in the form of anXML data file as show for purposes of illustration as FIG. 4A, FIG. 4B.

By way of example, QuickBooks® Pro/Premier/Enterprise and otherfunctionally similar payroll systems inefficiently store payroll data ina verbose XML programming language with extra data not generallyrequired for determination of an insurance premium. Therefore, aparsing/filter process 210 extracts from the XML report informationessential to a workers' compensation determination.

Process 225 includes applying the jurisdictional conditions such asworkers' compensation classification rates to account for variousemployee status (e.g., a company officer status may have particularitiesregarding insurance premium requirements) and applies state rulesapplicable to such status. After the state inclusion and exclusion rulesare applied, a calculation 227 of final amounts are made from the data.Following step 227, the data are pushed into a typical payroll deductbanking/billing process 230. At a scheduled time, a notification 233typically sent via email notifies the employer (i.e., the insured) of animpending premium withdrawal made via electronic funds withdrawal.Following notification the premium funds are withdrawn 235 from theemployer's bank account and deposited into the insurance company'saccount.

Process 200 is capable of recognizing and accommodating a variety ofdata formats and reforming or conditioning the payroll data dependentupon the source of the data in determining the workers' compensationpremium. FIG. 3A and FIG. 3B illustrate the process 211 for efficientlyextracting data from the payroll record as illustrated by FIG. 4A andFIG. 4B as required for a determination of workers' compensationpremiums and conditioning the payroll data dependent on the source ofthe data through a parsing and filtering process. By way of example andnot limitation data that is not required for a determination of workers'compensation premiums and therefore discarded might be: PayrollLiabilities and Liability (an account to which a payment is attributed).By way of example and not limitation other data that may be filteredare: under TxnType, transactions listed as Liability Checks, LiabilityAdjustments, Year-to-Date Adjustments, and Non-Payroll Transactions; andunder SSNOrTaxID, any employee names having not correspondingidentification number or having an unrecognized identification number.

The payroll as shown in XML program data listing FIG. 4A, FIG. 4Bindicates a “DataRow” record, having a row of data, as if it werepresented in a tabular report. Each field in the “DataRow” is held in a“ColData” element. The columns such as “ColData” are defined at thebeginning of the report in FIG. 4A. Each row represents a line item froman employee payroll. Delimiters such as “</Employee>” are located at theend of a record signifying when the payroll record has moved to the nextemployee, e.g., “Duncan Fisher” in the payroll transaction illustratedby FIG. 4A and FIG. 4B.

The lines of code illustrated in FIG. 4A, describe the column settings,which may be ordered differently by different payroll systems thatgenerate the payroll file. Parsing is a process that translates each ofthe differing payroll system data streams into a standard data streamthat can be processed by the system 200. In Step 210 the process readsthe XML data file and passes it to the system 200. At block 212 thepayroll data is parsed, that is, translated and data extracted asrequired for a determination of workers' compensation premiums and savedas a modified payroll record in temporary holding database 213. Theinitial parsing 212 stores the necessary information in database such asdatabase 170 in a relational database format (business-<employee-<transaction-<payroll item) so that the data can later befurther condensed into modified payroll files. A filtering process 214extracts payroll data exclusive of other payroll deductions, such asHealth Insurance, Employee Training Taxes. Information not required isdiscarded 221 a.

Referring to FIG. 4B a first transaction, <ColData colID=“10”value=“1A2F-1197758384”/> denotes a paycheck paid to employee “DuncanFisher” and as such passes through the filter 214. The filter 214 alsodetermines whether: (1) the check date is between effective andexpiration dates of the policy, (2) the employee is recognized, (3) theemployee ID is available, and (4) the record is “Paycheck” typetransaction. The results of parsing 212 and filtering 214 produce apaycheck as illustrated in FIG. 4C. Note that the second transaction,ColData colID=“10” value=“200B-1197737000”, has been completely filteredout because it had been designated a tax liability payment and not anemployee's earnings.

Still referring to FIG. 3A and FIG. 3B, output from the filteringprocess 214 is fed to a second parsing process 215 to create a data filein accordance with a preset accounting style. The output file fromprocess 215 outputted as data stream 216 which is fed to a filter 217.This second round of filtering removes some pay types that can beautomatically identified as not being Workers' Comp eligible. Forexample, tax items (which have previously been identified for theirbusiness via the WageltemQuery and NonWageltemQuery from QuickBooks) arefiltered out. These include social security and federal withholding. Afurther parsing of the data results in a file that is saved 218 in adatabase that is accessed by an inline fraud control 219.

The fraud control is any criteria that may evidence tampering with thepayroll. In one embodiment of the invention, the process fraud control219 compares a preloaded employee count against the employee count thatwas initially underwritten during the generation of the workers'compensation insurance policy. Additionally, the process 219 inspectsfor any deleted or missing payrolls or payrolls modified after theissuance of the policy.

If the data file created in step 218 fails one or more fraud tests, theprocess sends a notification that informs an individual who can thenperform further analysis or make a determination to continue 228 toprocess the data file. In the event the so notified individual decidesnot to continue a determination of workers' compensation premiums, theprocess 200 is stopped 230. In Step 220, if the pay type (e.g.signifying an director and not an employee of a company) as listed inthe input file (See, FIG. 4A), is not eligible for having workers'compensation, the file is discarded 221 b, otherwise a new data file 224is created as illustrated in FIG. 5A and FIG. 5B.

In one embodiment, the processes illustrated in FIG. 3A are incorporatedinto the system 110 n and the processes illustrated in FIG. 3B areincorporated into the server 130 or server 140. These two separate sitesare interconnected as described in FIG. 1. In an alternate embodiment,the processes illustrated in FIG. 3A and the processes illustrated inFIG. 3B are incorporated into one site comprising server 130 and server140. In each instance when data is transmitted over an unsecured networkas may be the case in regards to network 120, the data is encrypted asit applies to payroll data.

Returning to FIG. 3B, the new data stream 224 file as illustrated inFIG. 5A and FIG. 5B is processed 225 (FIG. 2) through a rules engine 180where state inclusion and exclusion rules are applied. State exclusionand inclusion rules deal with whether to factor into the workers'compensation premium such items as: Wages, Salaries, Commissions,Bonuses, Overtime (Premium Portion), Shift Differential, Premium Pay,Holiday, Sick, Vacation, Statutory Insurance, Pension, Piecework, ProfitSharing, Incentive Plan, Tool Allowance, Housing Pay, Meal Allowance(regular time), Meal Allowance (overtime), Gift Equivalents, Section 125(employee paid), Davis-Bacon wages to employee, Annuity plans, Expensereimbursements, Non business expenses, Expense reimbursements, Qualifiedbusiness expense, Tips, Severance, Military Pay, Employee discounts,Uniform reimbursement, Sick Pay paid by TPA, Davis-Bacon wages tothird-party trust, Employer contributions (group insurance/grouppension), Employer contributions (salary reduction), Employercontributions (employee savings plans), Employer contributions(retirement), Employer contributions (cafeteria plans), Employercontributions (stock purchase plans), Employer contributions (deferredcompensation), Fringe Benefits and Travel Time.

FIG. 6 and FIG. 7 illustrate computer screens appearing in the exemplarybrowser based system 100 under the control of host computers' operatingsystems as earlier described to facilitate editing various systemparameters. A running notification icon 610 appears in a taskbar of auser screen appearing in a browser resident on FIG. 1 display 103 oroptionally on display 133. Clicking the icon 610 causes a notificationicon pop-up menu 620 that allows the user to chose one of severaloperations executed through hyperlinks. The Run Payroll Upload operationbegins the process 200 to upload payroll data. The Exit Applicationhyperlink ends the application process 200. Menu 620 also allows theuser to edit profiles. Choosing Edit Profiles, causes the operatingsystem to produce a User Profile Setting screen 630. In the edit profilemode, when the user provides a Username and Password that the system 100recognizes to allow the user access to the system 100 for purposes ofchanging parameters in the upload utility illustrated in FIG. 2, steps201, 203. By way of example, the user can remove a profile by clickingthe Remove This Profile or change the profile that indicates theinsurance policy by way of a control number (e.g., 76WEGJU1234), underwhich a workers' compensation liability is insured. The user can alsoBrowse one or more Company Files utilizing a Brower button asillustrated. With reference to FIG. 7 the user can view by way offurther example account information 700 for various accounts such as theillustrated account 76WEGJU1234. Account information may include: LastCompleted Payroll Upload and date; the Company File name under which thepayroll data setting are stored; Online Account Information indicatingthe Last Upload Connection date and time; status of New PayrollsReceived; status of Last Check Date received; Named Insured; PolicyNumber; the FEIN or Federal Employer Identification Number; theEffective Date of the Policy and the Expiration Date of the policy.

The foregoing invention has been described as a system and method forprocessing payroll insurance premiums related to workers' compensation,however the invention also pertains to any system and method thatdepends upon a payroll to determine a liability obligation andconcomitant insurance premium. Certain general liability insurancepolicies have premiums dependent on the number of workers or contractorsemployed because actuarially these numbers best reflect a generalliability risk. Examples of general liability dependent upon number ofworkers and contractors are construction and farming. In these examples,the number of workers is a measure of activity and thus correlates togeneral liability risk. Other examples are known to exist and in eachinstance the present system and method may be employed extract payrollinformation and dynamically verify, calculate and bill general liabilitypremiums in real time.

While the foregoing invention has been described with reference to theabove embodiments, additional modifications and changes can be madewithout departing from the spirit of the invention. Accordingly, suchmodifications and changes are considered to be within the scope of theappended claims.

What is claimed is:
 1. A computer-implemented method for determiningpayroll related insurance premiums, comprising: receiving at a servercomputer first payroll data relating to a first employer in a first dataformat from a first source and second payroll data in a second dataformat from a second source, wherein at least one of the first sourceand the second source comprises an employer payroll computer system atan employer location, the received data read and extracted by a utilityprogram at the employer location; conditioning by the server computerthe received payroll data in the first and second data formats intouniform format payroll data; filtering by at least one of the utilityprogram and the server computer the payroll data to remove non-premiumrelated data; applying by the server computer one or more inclusion andexclusion rules from a rules engine to the uniform format payroll datato determine payroll data items to consider in calculating apayroll-based insurance premium; and calculating by the server computerpayroll-based insurance premiums using said data items.
 2. Thecomputer-implemented method of claim 1, wherein at least one of thefirst source and the second source comprises a payroll company.
 3. Thecomputer-implemented method of claim 1, wherein the first sourcecomprises a first employer payroll computer system at a first employerlocation, the first employer payroll computer system comprising anon-transitory computer-readable medium storing accounting softwareprogram instructions, and a data storage device having first employerpayroll data stored in accordance with a format determined by theaccounting software program, and wherein the second source comprises asecond employer payroll computer system at a second employer location,the second employer payroll computer system comprising a non-transitorycomputer-readable medium storing accounting software programinstructions, and a data storage device having second employer payrolldata stored in accordance with a format determined by the accountingsoftware program.
 4. The computer-implemented method of claim 1, whereinthe filtering comprises receiving a payroll transaction associated withthe first employer, determining whether a check date of the payrolltransaction is between an effective date and an expiration date of aninsurance policy issued to the first employer, and responsive todetermining that the check date is not between the effective date andthe expiration date of the insurance policy, filtering out the payrolltransaction.
 5. The computer-implemented method of claim 1, wherein thefiltering comprises receiving a payroll transaction associated with thefirst employer, determining whether a transaction type field of thepayroll transaction has a value of at least one of liability checks andliability adjustments, and responsive to determining that the value ofthe transaction type field is at least one of liability checks andliability adjustments, filtering out the payroll transaction.
 6. Thecomputer-implemented method of claim 1, wherein the first data format isa first XML data format having first column settings and the second dataformat is a second XML data format having second column settings.
 7. Thecomputer-implemented method of claim 1 further comprising transmittingthe payroll data by at least one of the employer payroll computersystems to the server computer in real time.
 8. The computer-implementedmethod of claim 1 further comprising the step of transferring one ormore premium bills including one or more of the payroll-based insurancepremiums to a billing system.
 9. A computer system for determiningpayroll-based insurance premiums, comprising: a hardware serverconfigured to: receive first payroll data relating to a first employerin a first data format from a first source and second payroll data in asecond data format from a second source, wherein at least one of thefirst source and the second source comprises an employer payrollcomputer system at an employer location, the received data read andextracted by a utility program at the employer location; condition thereceived payroll data in the first and second data formats into uniformformat payroll data; apply one or more inclusion and exclusion rulesfrom a rules engine to the uniform format payroll data to determinepayroll data items to consider in calculating a payroll-based insurancepremium; and calculate computer payroll-based insurance premiums usingsaid data items; wherein at least one of the hardware server and theutility program is configured to filter the payroll data to removenon-premium related data.
 10. The system of claim 9, wherein at leastone of the first source and the second sources comprises a payrollcompany.
 11. The system of claim 9, wherein the first source comprises afirst employer payroll computer system at a first employer location, thefirst employer payroll computer system comprising a non-transitorycomputer-readable medium storing accounting software programinstructions, and a data storage device having first employer payrolldata stored in accordance with a format determined by the accountingsoftware program, and wherein the second source comprises a secondemployer payroll computer system at a second employer location, thesecond employer payroll computer system comprising a non-transitorycomputer-readable medium storing accounting software programinstructions, and a data storage device having second employer payrolldata stored in accordance with a format determined by the accountingsoftware program.
 12. The system of claim 9, wherein the filtering ofthe payroll data comprises receiving a payroll transaction associatedwith the first employer, determining whether a check date of the payrolltransaction is between an effective date and an expiration date of aninsurance policy issued to the first employer, and responsive todetermining that the check date is not between the effective date andthe expiration date of the insurance policy, filtering out the payrolltransaction.
 13. The system of claim 9, wherein the filtering comprisesreceiving a payroll transaction associated with the first employer,determining whether a transaction type field of the payroll transactionhas a value of at least one of liability checks and liabilityadjustments, and responsive to determining that the value of thetransaction type field is at least one of liability checks and liabilityadjustments, filtering out the payroll transaction.
 14. The system ofclaim 9, wherein the first data format is a first XML data format havingfirst column settings and the second data format is a second XML dataformat having second column settings.
 15. The system of claim 9, whereinthe hardware server is further configured to transmit the payroll databy at least one of the employer payroll computer systems to the servercomputer in real time.
 16. The system of claim 9, wherein the hardwareserver is further configured to transfer one or more premium billsincluding one or more of the payroll-based insurance premiums to abilling system.
 17. The system of claim 9, wherein the one or moreinclusion and exclusion rules comprise state jurisdictional rulesrelating to workers compensation insurance.
 18. A non-transitorycomputer readable medium having computer-readable instructions storedthereon which, when executed by a processor, cause the processor to:receive first payroll data relating to a first employer in a first dataformat from a first source and second payroll data in a second dataformat from a second source, wherein at least one of the first sourceand the second source comprises an employer payroll computer system atan employer location, the received data read and extracted by a utilityprogram at the employer location; condition the received payroll data inthe first and second data formats into uniform format payroll data;apply one or more inclusion and exclusion rules from a rules engine tothe uniform format payroll data to determine payroll data items toconsider in calculating a payroll-based insurance premium; and calculatecomputer payroll-based insurance premiums using said data items; whereinthe instructions further cause the processor to perform one of:receiving the payroll data filtered by a remote utility program toremove non-premium related data, and filtering the payroll data toremove non-premium related data.
 19. The non-transitorycomputer-readable medium of claim 18, wherein the first data format is afirst XML data format having first column settings and the second dataformat is a second XML data format having second column settings. 20.The non-transitory computer-readable medium of claim 18, wherein theinstructions further cause the processor to analyze the received payrolldata for evidence of fraud by omission of data relating to one or moreemployees.